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CharlemagneAnd then there was oneGermany now stands alone. But its power may weaken the euro zoneJan 21st 2012 | from the print edition

CREDIT-RATING agencies are a favoured scapegoat of many European politicians, incurring mounting wrath as they downgrade the debt of one sovereign after another.

They stand accused of ignorance over European reforms or even of being part of an Anglo-American conspiracy to destroy the euro.

Such opprobrium owes much to the fact that, although they are flawed arbiters, the rating agencies can speak uncomfortable truths.

The decision by Standard & Poor’s, one of the big three, to downgrade nine European governments on January 13th was an example. S&P punctured the optimism over recent bond auctions in Italy and Spain. It chastised governments for their inadequate response and their misguided obsession with austerity. And by drawing so many into the net, it made clear that the problem is not just individual countries, but the euro zone as a whole.

Latin American leaders at Davos say region well placed to withstand a global recession

By Associated Press, Updated: Wednesday, January 25, 8:52 AM

DAVOS, Switzerland — When the developed world sneezes, the old saying goes, Latin America catches a cold. But now, after decades of austerity and reforms, the region’s leaders say their immune systems are in pretty good shape.

Latin American politicians and business leaders gathered among the world’s elite at a Swiss ski resort are speaking from a position of power, crowing about successes in places like Brazil, Mexico and Chile and even offering lessons to Europe about how to deal with crippling debt crises.

“Latin America has never been better equipped to move forward,” said Guillermo Ortiz, former governor of the Bank of Mexico. “We don’t have to worry about inflation shooting up to 100 percent next year. This is invaluable, because it unleashes the possibilities at a micro level of doing everything that we need to do.”